Sea Breeze Power and Sea Breeze Energy restructuring under BIA

This Bankruptcy and Insolvency Act restructuring matter involved a going-private transaction for Sea Breeze Power Corp., a publically-traded company which, through dozens of subsidiaries and affiliate companies, was engaged in the development of hydro-electric and wind-power generation and transmission projects in B.C. Sea Breeze holds some of the most significant development-stage wind power and hydro-electric generation projects in the province. For years, Sea Breeze had been propped up by secured loans from its most significant shareholders, who had indicated that they were no longer prepared to fund the company and its subsidiaries. The restructuring sought to eliminate the companies’ debt by way of exchanged secured debt for new equity, and cancelling all existing equity, and the compromise of unsecured creditor claims. The restructuring was particularly difficult, and required substantive amendments to the proposal, due to complicated issues relating to the preservation of the companies’ tax attributes as part of the restructuring.